Netflix Xbox adaptation deal collapses over US$ 800 million price tag By Luís Henrique Costa
3 min read
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Netflix and Microsoft ended, without an agreement, talks for an exclusive package that would turn Xbox games into movies and series in the United States. The financial standoff became public on October 23, 2026. Netflix dropped the executive who led the negotiations and judged the price demanded by the console maker too high.
The push to buy the adaptation rights began with Bela Bajaria, then the streamer’s chief content officer, but it met resistance from other company leaders. Netflix announced on October 15, 2026 that Bajaria was leaving after nearly ten years, and that former Disney and Fox executive Peter Rice would take over the role, effective October 26. The Xbox offer came off the table after that change.
Gap of US$ 300 million stalls the Netflix proposal
Before the talks were cancelled, the commercial team of Xbox, the gaming division of Microsoft led by chief executive Asha Sharma, rejected Netflix’s first proposal. It answered with a higher price for control over its catalog’s film and TV rights. The main figures that blocked the deal were these:
- Netflix’s initial offer for the exclusive package: US$ 500 million.
- Counteroffer Xbox required to license the rights: US$ 800 million.
- Length of the exclusivity contract sought by both sides: seven years.
Inside Netflix, chief financial officer (CFO) Spence Neumann was among the executives who considered the deal too expensive for the company’s finances. Neither Netflix nor Microsoft has officially confirmed the values discussed in the meetings. Netflix declined to comment on the case, while Microsoft said it would not comment on specific bids or negotiations.
Xbox moves to smaller deals with several partners
Without a single exclusive contract, Microsoft’s games division decided to change its commercial strategy and take its franchises to cinemas and TV through smaller, separate agreements. The format lets the company develop several projects at once with multiple production companies and video services. The shift follows the creation, in early October 2026, of an internal Microsoft unit dedicated to expanding its game brands into other media.
In an official statement, Xbox confirmed that its partnership with the streaming service remains active for specific projects already under contract. The company said it had received record interest in its intellectual properties and cited animated Minecraft and Diablo series still to come.
Netflix layoffs and mixed results for games on screen
The breakdown came during a period of heavy cost cuts and leadership changes at the streaming company. Netflix cut about 1,000 jobs in October 2026, and Bajaria’s exit came alongside that restructuring. The platform also recently dismissed Dan Lin, head of its film division, and has not yet named a replacement for the vacant post.
The dispute over licensing values for Microsoft’s brands also reflects mixed results for game adaptations on screen. Recent productions based on well-known franchises drew different reactions from audiences and critics:
- The Super Mario Galaxy Movie: passed US$ 1 billion at the box office, despite a divided reception.
- Resident Evil: received positive reviews at its recent release.
- Street Fighter and Mortal Kombat 2: drew a divided reception from audiences and critics.
